The Global Market for Cloud Services Brokerage is Projected to Reach US$13.3 Billion by 2020

Commoditization of Cloud Spurs the Emergence of Cloud Brokers as New Players in the Cloud Ecosystem, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Cloud Services Brokerage market. The global market for Cloud Services Brokerage is projected to reach US$13.3 billion by 2020, driven by growing cloud commoditization, rising popularity of multi-cloud sourcing strategy and the ensuing need for cost effective management of the same.

Over the last couple of years, cloud computing has hit mainstream with a large number of companies developing their own cloud platforms, deploying internal clouds and also migrating towards hosted private and public cloud platforms. Developments in cloud security technologies have played instrumental roles in pushing up adoption of cloud services, especially public cloud services. Virtually every company today utilizes cloud computing and converged IT resources to drive down costs, improve business agility, and drive business value. The growing pervasiveness of cloud computing is driving commoditization. One of the early signs of commoditization is the growing price wars in the cloud services market. Cloud compute and storage have especially become commoditized, with differentiation becoming ever harder to build. Computing, memory, I/O, and storage are all being commoditized with consumers no longer concerned about who is providing the service and on what type of severs the services are running on. With consumers ceasing to differentiate between brands poised to benefit is the cost to performance ratio of cloud services available in the marketplace. Against the backdrop of blurring heterogeneity, Cloud services brokerage and cloud exchanges are evolving as new cloud ecosystem players.

Defined as cloud ecosystem players who bring both cloud service providers and cloud consumers together in a mutually beneficial business arrangement, cloud brokers are intermediary players who add value to cloud services offered by multiple vendors by bringing in aggregation, integration and customization benefits. The brokerage business model is spurred by standardization and commoditization of cloud services, making it easy for consumers to migrate and shop from one standardized service offering to another as per need. Both cloud marketplaces and brokerages are rising in popularity as lucrative business models to milk money from the commoditization trend. Cloud brokers help optimize vendor and customer relationships, resulting in superior outcomes for both parties. Key factors driving growth of cloud services brokerage include rise in management overheads associated with multi-cloud sourcing strategy; strong adoption of cloud computing services; the need to monetize excess cloud resources through broker marketplaces; and heavy adoption among SMBs. The growth in the market is also fuelled by the availability of platforms for establishing P2P marketplaces and the ensuing ease in white labelling of cloud brokerage services.

As stated by the new market research report on Cloud Services Brokerage, Asia-Pacific represents the largest market worldwide, supported by the region’s growing clout as the IT outsourcing hub worldwide, the emergence of cloud ready Asian countries and the growing adoption of cloud IT architecture in the enterprise sector. The United States is projected to grow at the fastest CAGR of 33.8% over the analysis period, led by the well-developed cloud ecosystem, strong early adopters’ trust in the cloud, and robust sales of cloud brokerage enablement solutions as a result of the growing focus on internally handling cloud brokerage functions. Cloud Brokerage Services represents the largest market segment accounting for a majority share in total revenue, while Cloud Brokerage Enablement Solutions represent the fastest growing market segment with revenue growing at a CAGR of 33.6% over the analysis period.

Major players covered in the report include Accenture Plc, ALSO Holding AG , AppDirect, Arrow Electronics Ltd , Capgemini S.A , Cloud Manager Inc., CloudMore , ComputeNext , Dell Inc., DoubleHorn, LLC, Gravitant Inc., Hewlett-Packard Company, Jamcracker Inc., Liaison Technologies, NEC Corporation, Neostratus, Nephos Technologies,  OpenText Corp, among others.

The research report titled “Cloud Services Brokerage: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the US, Japan, Europe, Asia-Pacific (China, South Korea and Rest of Asia-Pacific), and Rest of World. The global market is further analyzed by the following segments – Cloud Brokerage Services and Cloud Brokerage Enablement Solutions.

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